Speaking during Prime Minister’s Questions today (9 September), Burnham was challenged by Plaid Cymru MP Liz Saville Roberts on whether the Government would cut VAT for hospitality ahead of the Autumn Budget.
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Saville Roberts cited a community-owned pub in her constituency as an example of the role pubs can play in supporting local economies through events, local beer and food.
She said businesses like this were key to economic growth in coastal areas but were being held back by 20% VAT, while hospitality businesses in France, Spain and Italy paid 10%.
Budget support
Saville Roberts asked whether Burnham would speak to the Chancellor ahead of the Budget and cut VAT for hospitality “to prove that postcodes furthest from London and from Manchester won’t be forgotten” in the Government’s growth drive.
Burnham replied: “I am something of a pub person myself and in my first week in office made a decision to cut business rates for pubs.
“I think we need to go further to support hospitality. I can’t commit to what she’s saying today, but I would say that she should wait for the Budget.
“We are keen to support high streets and hospitality up and down the country, in England, Scotland, Northern Ireland and Wales.”
The remarks follow a series of pub-focused interventions from Burnham since entering Number 10.
Last week, he told The Standard he was “a big pub person” and said London was “spoilt” for pubs, while also naming the Dog House in Kennington as one of his favourites.
His Government has also announced a 20% cut to business rates bills for pubs, social clubs and live music venues from April next year, alongside an independent review into how pubs and hotels are valued for business rates.
Sector pressure
The comments come ahead of the Autumn Budget, with pub and hospitality leaders continuing to call for action on VAT, business rates, employer costs and wider operating pressures.
Trade bodies and operators have repeatedly warned that pubs remain under pressure from higher labour, energy and tax costs, while many in the sector have argued a VAT reduction would help protect venues, jobs and investment.
